[shankar.balan]

Artificial pricing. Builders choking off supply by keeping projects vacant rather than bring the price down. All builders are selling at prices which factor in the inflation for the next 15 years. Which means when you buy you are starting off with a fifteen year price handicap. On a property investment in the metro cities, only the next gen will benefit, not the present gen. Incidentally the rental income will probably be equivalent to about 20 or 25% of the EMI so that is also a dead end!
Add one more irritant. Ten to fifteen years down the line, think how difficult it will be and how much it will cost, to get maids and other help to keep your fancy 5000 sq ft villa clean!

[apachelongbow]

^^ in 15 years we hopefully would have robotic vaccum cleaners/mops which roam around the house cleaning it, bye bye maids, so let them outprice themselves and die for all I care!!

Regarding buying parking space, as long as the society is providing covered parking garages or even well marked/bounded open air parking with proper security, they can charge for the same. The charge is for the services. In our apartment complex we have all bought the covered parking spaces (stilt parking) and all the open air parkings are well light/marked and let out on a fixed monthly rent. Upside: every member has fixed number of parkings available, no fighting daily for parking space, if one needs more parking, one can rent it out depending on needs, downside: relatives and friends must park on the main road, at their own risk

[noopster]

It's only to be expected. Land prices in South Bombay are about 50 times that in suburban Pune, where I live. Since builders here are charging 2-3 lac per parking, do the math

Off-topic: how the hell do people afford to live in maximum city anymore? As someone who grew up there, I am completely befuddled.

[raul]

South Bombay is pricey, with apartments for for 20-30cr parking at a crore is not surprising. Ultimately there is a lot of money concentrated here and folks have the money to pay these prices.

China recently clamped down pretty hard on real estate inflation and there has been a correction. This negatively impacts consumption if purchasing power is tied up in real estate and even the average 2bhk in Borivali is 1cr so that's 80-100k in EMI, money that could be used to drive the economy instead of funding the super rich.

In Mumbai the people who need to do this are the folks who benefit from the artificial scarcity so that's not going to happen. All the black money goes into real estate via builders and investments, and all sorts of dubious dealings.

Proper planning for a growing city would have ensured better infrastructure, living conditions and realistic prices but there is way too much money to be made in keeping things as they are. There are large tracts of land that can be connected by bridges that will free up the city but this will deflate the real estate cash cow. India is run by a few for a few.

[vinya_jag]

Originally Posted by harishpr

Some parts of bangalore that has no roads or water, is selling for a fortune. All apartments in hosa road, sarjapur road, devahahalli, and whitefield are selling in upwards of 2 crore with no basic amenities. I see water tankers fulfilling most of water needs, and ask a simple question; how long will they sustain?

Water in Bangalore was a problem from very early days. Not today.
A few years back, people did not have money to pay for buying water, but today, we have enough to buy drinking as well as water for everything else.

Water supply is a big Mafia. People are already making more money by selling water, than a lot of the water buying IT sector.

Tomorrow, elections will be won or lost on the basis of water power.
Yesterday, was watching this movie Quantum of Solace, and I feel Bangalore has way to go before it hits the alarm bells.

So, yes, Bangalore will head the same way. A crore for a parking slot.
No water? Excessive pollution? Raising temperatures? High noise levels? Traffic?
Come what may, Crore is the way to go.

[kutts]

What about covered car parking fee at your office premises ? The higher band rates are 1000 + 12.5% tax per month at Trivandrum. Thats a whopping 12500/- per annum. Bangalore and other metros would be much higher I guess.

[GunMo]

^^ @kutts,
That's Rs.13500/- per annum @ 12.5% tax.

I'm paying Rs.1000 per month (all inclusive) to park my second car within our apartment complex. Thankfully each apartment, either 2 BHK or 3 BHK, gets one open car slot in our community (there's no stilt / covered parking in the building) and the builder was earlier quoting 25k per slot back in 2004, but finally gave it for free citing the SC ruling!

This is in Velachery, Chennai.

[Imran.Syed]

bought a stilt parking for 40k bucks back in 08. current value: 15lakhs, and I am talking about malad here.
Should have bought more stilts then.
Now have to pay 4000 bucks a month to park the other 3 cars.

[Urban_Nomad]

Originally Posted by devil_klm

Only way to own one is to get it asap.

"Run run, sky is going to fall" kind of sentiment is what is feeding and keeping this sickness in real estate alive (apart from rampant corruption and our collective greed). Buy today - take loans; spend your entire life's savings but BUY TODAY. Whatever the price; buy today. It will double in 1 - 2 years; is what everyone seems to be telling you. The fear of "missing the bus" combined with dreams of getting rich quick continues to expand this bubble.

This bubble will pop with a deafening bang; it just HAS to. The economic realities are light years away from the real estate deals. Ominous signs are everywhere.

A "budget home" today ranges anywhere between 40 lac to 1 crore; in a nation that deems anyone can live a respectable life if (s)he makes Rs 32 a day.

Jai ho!!!!

[Doc Maanava]

Today it is parking, tomorrow it will be worse!

I rue the fact that the day is not far off, when all the rivers are dry (as we have cut off the water collection inlets - due to garbage, waste disposal, land grabbing for constructing, huge buildings), our ground waters are poisoned beyond repair (due to pollution from various sources, a lot of it from the things we love - auto mobiles and their upkeep in the garages roadside or otherwise (as it is our ground waters are not fit for drinking purposes), the air we breathe is not even fit for reconditioning or cannot be cleaned any-more (as it stands we as a country are facing severe bouts of respiratory diseases Asthma anyone, allergies, etc.) on that day my dear brethren of this beautiful country all these money people can eat their money, drink their money and breathe their money for there wont be much left.

I am not a doom-sayer, and it might be a little off topic here, but there is hope that this wonderful community can contribute one step at a time, to make life and our country beautiful.

“Treat the earth well”, it was not given to you by your parents,
it was loaned to you by your children.
We do not inherit the Earth from our Ancestors,
we borrow it from our Children.
- Ancient American Indian Proverb

[invidious]

Originally Posted by Urban_Nomad

"Run run, sky is going to fall" kind of sentiment is what is feeding and keeping this sickness in real estate alive (apart from rampant corruption and our collective greed). Buy today - take loans; spend your entire life's savings but BUY TODAY. Whatever the price; buy today. It will double in 1 - 2 years; is what everyone seems to be telling you. The fear of "missing the bus" combined with dreams of getting rich quick continues to expand this bubble.

This bubble will pop with a deafening bang; it just HAS to. The economic realities are light years away from the real estate deals. Ominous signs are everywhere.

A "budget home" today ranges anywhere between 40 lac to 1 crore; in a nation that deems anyone can live a respectable life if (s)he makes Rs 32 a day.

Jai ho!!!!

People have been talking about this bubble bursting for a while now. There is some minor correction but even a 10% drop sees a slew of buyers picking it up, thereby once again driving the price up. The only way to get a good deal in Bombay is when the builder has just acquired the plot and requires liquidity to fuel his construction. I am talking of the smaller, mid-range builders.

The bigger builders while offering better amenities skimp on the actual area they sell you. I have lived all over the world but have never grasped the Bombay centric concept of "built up area" and "super built up area". Who pays for pillars holding the building up?

Some of the bigger builders have borrowed very heavily. But there is a Municipal Corporation - builder - politician nexus whose stranglehold on the city is tough to break. You could easily give an FSI of 8 all across the city and presto - prices will come down. With the taxes you get from Bombay set up a desalination plant to supply water from the Arabian sea to Bombay residents.

None of this is going to happen.

[download2live]

Originally Posted by Urban_Nomad

This bubble will pop with a deafening bang; it just HAS to. The economic realities are light years away from the real estate deals. Ominous signs are everywhere.

Maybe you are not aware of Black money.
This real estate bubble derives its life support from the vast underground ocean of Black money India floats on.

Mark my words.
The property prices will only go up.
And morals of people will only go down.

[devil_klm]

Originally Posted by Urban_Nomad

This bubble will pop with a deafening bang; it just HAS to. The economic realities are light years away from the real estate deals. Ominous signs are everywhere.

A "budget home" today ranges anywhere between 40 lac to 1 crore; in a nation that deems anyone can live a respectable life if (s)he makes Rs 32 a day.

Do you think the real estate brokers and mafia will allow this to happen in India?? As per my understanding the prices went down a max up to 20% during recession in 2008-09. And now the prices are more than double of that. Take the daily news paper of any metro city and count the number of ad for apartments. Listen to FM and take the count of ads in 5 min. The big business in India is this. Hope for the best. It may burst. Are you sure you will have a job at that time or your business will run without issues then. And availability of loan.
Budget home from 40-1CR is from middle class mans point of view. Person who is earning 32/Day also is living in these metros. Look around and see. We are slightly moving away from our topic of car parking charges

[Gansan]

Originally Posted by GTO

Not really news, garages of some buildings in Cuffe Parade have sold for over 1 crore. It's funny when you see the new owner parking a regular C2 or D1 segment car (typically Honda City, Toyota Corolla, Skoda Laura) there

Ha ha! That reminds me of a boss of mine, way back in 1985 whan I was a fresher at my employer's factory in deep south TN. This was a typical factory with it's own township nearby, and our office was located in between the two. The office can be reached from the township even by walk, if one did not mind it.

This boss had a used Standard Herald car, specifically bought for conveyance allowance by selling his Bajaj Chetak scooter! (He even bought a used TVS 50 from the left-over money after buying this car)! After a while he was smitten by the newly launched LML Vespa 150 and bought one. His son had a BSA SLR bicycle. So, this gentleman will come to office by car, LML Vespa, TVS 50 or BSA SLR, according to his whim on that particular day.

Now, this worthy had a reserved, covered parking place at the office. What really amused us was, he will coolly park whatever contraption he brought to the office at that place and nonchalantly walk away! When someone jokingly mentioned it to him at an office party, his comment was "So what? That place is reserved for me and I will park any of my vehicles there. I will even leave my chappal there if I want".

[Swanand Inamdar]

Not at all surprising.
As many Bombayites have pointed out, the flats in those areas itself go for 20-30 crores. Taking that into consideration, a parking slot of 1 crore doesnt raise eyebrows.

Even in Pune, parking slots have started attracting premiums. In my current apartment, we had paid 75k for a slot, back in 2004.
Im in the process of buying another flat, in the vicinity, and the parking slots, in this complex are being sold for 2 lacs per slot. Taking into consideration that there are at least 2 cars per family on an average, one is left with no choice, but to cough up that extra amount for an enclosed parking.